Maths Question

the_goon

Hi

My current ISA pays 2.10%. I have looked around at other ISAs, but can't find any that doesn't require me to have an account with the bank, allow access online and allow transfers in of old money.

I have also just set up the AA savings acount, that pays 2.80% interest.

My question is, is 2.8% (taxed) better than 2.10% (untaxed)?

Thanks

Lokolo

2.8% is 2.24% after tax.

lisyloo

I had to set up a current acoount with first direct.
Don't use it.

What's the big deal, with setting up an account you don't use??
especially if it's going to cost you

the_goon

lisyloo wrote: »

I had to set up a current acoount with first direct.
Don't use it.

What's the big deal, with setting up an account you don't use??
especially if it's going to cost you

The one I looked at stated that you must pay £1000 per month into the current account. I assumed (wrongly it seems) that they were all like this.

Thanks, I'll take another look at them. :money:

debbie42

the_goon wrote: »

My question is, is 2.8% (taxed) better than 2.10% (untaxed)?

It depends upon whether you are a higher rate tax payer or not?

alanq

lisyloo wrote: »

What's the big deal, with setting up an account you don't use??

"Banking with first direct usually costs £10 a month, but it's free when you pay in at least £1,500 to your 1st Account each month, or maintain an average monthly 1st Account balance of £1,500, or hold a selected first direct additional product."
http://www1.firstdirect.com

So depending on whether or not the ISA was a "selected first direct additional product" it might be a very big deal.

the_goon

debbie42 wrote: »

It depends upon whether you are a higher rate tax payer or not?

No, I'm not.

Looking at the maths then, interest is charged at 20% then (same as income tax).

Thanks.

the_goon

Just found this...

http://www.alliance-leicester.co.uk/savings/direct-isa.aspx

This isn't mentioned on the MSE ISA page.

Looks good, and I don't need a A&L Current account.

Any thoughts on this one?

Thanks again

anniecave

Between A&L and Abbey there are normally some good offers going. I have an existing Abbey one. This looks quite good to me.
They rarely want you to have extra products with them, so they're good. Online access too.

lisyloo

alanq wrote: »

"Banking with first direct usually costs £10 a month, but it's free when you pay in at least £1,500 to your 1st Account each month, or maintain an average monthly 1st Account balance of £1,500, or hold a selected first direct additional product."
http://www1.firstdirect.com

So depending on whether or not the ISA was a "selected first direct additional product" it might be a very big deal.

Ok, if there are reaons then that's fair enough.
I wasn't aware of this but I have my mortgage with them so that's why I don't pay it.

I've never had any trouble moving ISAs and I do it about every 12 months, so maybe it's a new thing that I'm not aware of.

As always it's a case of doing the maths.
If you have a large amont then a £10 fee might not be the end of the world and thorectiaclly at least it still could be worth doing, so always you have to do the maths and not assume it's a non-starter just because there are charges.